Ichimoku & Fibo Analysis

FX:EURUSD   Euro / U.S. Dollar
EURUSD is severely overbought at the moment and a pullback is about to happen. Notice how the Tenkan Sen and Kijun Sen are crossing, that's a confirmation that the previous downtrend is coming to an end. However, because price is so overbought at the moment (and about to touch the Kumo cloud, a pullback will happen first.

Watching the Fib retracement levels down to 1.2940 which coincides with the Tenkan/Kijun Sen. If that level breaks, I'm expecting a further drop down to at least 1.2750. Alternatively I'll be looking for buy opportunities at the retracement levels leading up to 1.2940 with profit targets at the Fib extensions of 1.3242, 1.3380 and ultimately 1.3529.

Notice how the Chiku Span is above price as well...definitely a bullish sign in the medium to longer term despite the expected temporary pullback.


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